What is Insurance?

Insurance is a means of protection from financial loss. It is a form of risk management, primarily used to protect against the risk of a unsure or uncertain loss. An entity or company which provides insurance is known as an insurer/insurance company/insurance carrier or underwriter.

The amount of money charged by the insurer to the policyholder for the coverage set forth in the insurance policy is called the premium.The pre-decided amount that the insurance company pays to the policyholder when the insured event takes place is called sum assured.​Sum insured is the maximum value for a year that your Insurance Company can pay in case you are hospitalized.So,from the above we can understand sum assured & sum insured are almost same things but used in two different places.